Close CCs w/ balance b4 filing?

[LilStevens]

Since I am going to be filing BK, is it better to close my CCs though they have balances or is it better to just let the CC company lose them in the BK process?

I heard if I close them now it will say closed by me but not sure that will be better, because I heard once you close the account, they will more likely raise interest rates, etc. Right now one card is at 12% (8.9g on AAA) and the other 2 are at 24% (3.5g on Sears M/C and 3.5g on Guitar Center).

Thanks.

[CindyLou]

If you are going to file for sure then it really doesn't matter either way. In the end it will say, "Included in Bankrupty" So its really up to you to decide. Once you default they will raise the interest rates to the roof anyway. There will likely be a period of time between when you decide to file and when you stop paying and before you file so they will become deliquent at some point. I don't think it will affect your score, but if you want it to say you closed it then you could close it beforehand.

[CATCHMEIFYOUCAN]

I didn't think one could close a credit card if you are still owing. They will just stop you from using them?

Catchmeifyoucan

[CindyLou]

Some you can; some you can't...I know, for example that you cannot close Hooters as long as it has a balance because they want their annual fee. But I closed all of my Victorias Secret, Gap, Banana Republic type accounts with balances on them. It just depends on the card and what the terms are.

[LilStevens]

Thanks again